So you’ve finally done it: You’ve created the perfect pitch, taken it to some heavy-hitting potential investors and gotten them to agree to put their money into developing and manufacturing your product.
It’s an important question, and the odds are you were so focused on simply acquiring the funding for your product that you might not have thought about what comes next. But in many ways, this could be the most important phase of selling your product.
The excitement and the funding are there; now how do you translate both of those things into a successful product launch? Here are some tips on how to proceed once you’ve gotten the financial backing for your product.
This Is No Time To Slow Down
The idea that once you’ve been funded, everything’s going to be fine is a dangerous concept. Indeed, this is where the hard work often begins. It’s time to start hiring staff, finding office space and, if need be, starting to redesign your product towards the investors’ taste.
They’ve no doubt given you feedback on what they’d like to see change and what they’d like to stay the same, so the redesign is vital.
Now that the money’s there, have you hired an accounting firm to handle it? Have you researched what the best firms are to manage your funds? Remember, this money is the lifeblood of your business; it’s important to spend it correctly and wisely.
Part of spending that money wisely is paying the people that you’ve brought on board to develop and manufacture your product. Have you looked for a payroll company? Have you figured out how you’re going to measure hours worked, or whether you’ll be paying monthly or weekly, or whether you’ll be using direct deposit?
Remember, a promptly-paid employee is one of the best assets you can have to make sure your product is made well and sold properly.
Calling The Law
Every new product startup is going to need the right legal representation. You’ll have patents and copyrights to worry about, you’ll have potential liability and contract negotiations to deal with. There are a wide range of issues that only well-trained legal professionals are going to be able to deal with.
And those professionals are probably not going to work cheap.
Benefits & Insurance
When we say “insurance,” we’re not just talking about for your employees. Your startup is going to need business insurance ranging from Directors & Officers Insurance, which protects the supervisors of your company from litigation, to Owners Insurance, which protects the owners’ assets.
But you’ll also need health insurance for your employees, and worker’s compensation insurance, as well.
Where are you going to house your company while manufacturing your product? Do you need office space and warehouse space? Are they going to be at the same location, or will they be in separate places?
And what about your sales staff? Are they going to be mobile or will they need offices, as well?
The people that invested the money in your product are going to want to know what’s going on, and the more professionally you do so, the better. You’ll need to create well-formatted documents showing the details of board meetings, design changes, and other developments in your company.
Whether the investors actually look at these documents or not is irrelevant. You should still send them or have them on hand if an investor asks.
This is the least specific form of post-investment expenditures, but it still has to be accounted for. Do you know how much is going out the door to pay for minor items or unexpected surprises? The more you can control this aspect of your spending, the more solid your company will be.
This is the kind of post-investment management of assets, both physical and otherwise, that Pivot International was created to handle. Contact us today to find out the different ways we can help.